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DHIRAJ SINGH THAKUR, KAMAL KHATA
Bennett Coleman and Company Ltd. – Appellant
Versus
Union of India, through the Secretary, Ministry of Finance, Department of Revenue – Respondent
JUDGMENT :
(Dhiraj Singh Thakur, J.) :
1. The petitioner challenges the notice, dated 31st March 2021 issued under section 148 of the Income Tax Act, 1961 (‘the Act’) relevant to the assessment year 2016-17 primarily on the ground that the same was issued in the name of Times Infotainment Media Ltd. which is a non-existent entity.
2. Briefly stated the material facts are as under :
The case set up by the petitioner is that Times Infotainment Media Ltd. (“TIML”) was a wholly owned subsidiary of the petitioner, i.e., Bennett Coleman and Company Ltd., which was engaged inter-alia in the business of Private FM Radio Broadcasting investment and intellectual property rights (IPR) activities.
It is stated that with a view to consolidate the business of operations of the group companies and on account of various commercial reasons, a scheme of amalgamation and arrangement was formulated for merger of the TIML with the petitioner. It is further stated that Bombay High Court was pleased to sanction the scheme of amalgamation vide its order dated 3rd July 2015 with appointed date as 1st April 2013.
3. It is stated that the factum of amalgamation was brought to the notice of the Assessing Offic
The central legal point established in the judgment is that issuing a notice and passing an order of assessment in the name of a non-existent entity, despite knowledge of its amalgamation, renders th....
Notices under Section 148 of the Income Tax Act cannot be issued to a non-existent entity following an amalgamation, as such actions lack legal jurisdiction.
The impugned notice issued under section 148 of the Income Tax Act, 1961, in the name of a non-existing company due to amalgamation is not tenable in the eye of law, and the court has the authority t....
Notices issued under Section 148 of the Income Tax Act against non-existing companies post-amalgamation are invalid and without jurisdiction.
The legal principle established in the case of Principal Commissioner of Income Tax vs. Maruti Suzuki India Limited, which states that if a company has ceased to exist as a result of an approved sche....
An assessment notice issued against a non-existing entity post-amalgamation is void ab initio, reinforcing the principle that an amalgamated company ceases to exist legally.
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